A research note from TD Cowen states that finding equity and debt investors are increasingly questioning how Oracle will finance its datacenter building program to support its $300 billion, five-year contract with OpenAI.
The bank estimates the OpenAI deal alone is going to require $156 billion in capital spending. Last year, when Big Red raised its capex forecasts for 2026 by $15 billion to $50 billion, it spooked some investors. This year, "both equity and debt investors have raised questions about Oracle's ability to finance this build-out as demonstrated by widening of Oracle credit default swap (CDS) spreads and pressure on Oracle stock/bonds," the research note adds.
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